Most people have car insurance, health insurance and even insurance on their cell phone. But did you know that almost 40% of Americans do not have Life Insurance?
Outside of tax benefits, life insurance is great way to protect your loved ones. While having the peace of mind knowingly that you’re able to leave something more for your family, life insurance can also be quite an investment. There are several factors that determine the amount of premium that you will have to pay each year. Knowing what those factors are, can help better prepare you if you’re looking to get insured. Let’s take a look at what those factors are.
Age: The number 1 factor behind life insurance premiums is age. If you’re younger, you have a better chance at getting a lower rate compared to someone who is 70 or older and just starting to apply for life insurance.
Health: When applying for life insurance you go through an underwriting process. With that process there is a medical exam. Typically they check the following: Height, weight, blood pressure and other key metrics. If you have a previous heart condition they may also do an EKG or ECG.
Smoking: Keep puffin’ away, it’s like throwing money at life insurance companies for fun! If you’re a smoker, your rates can double what a non-smoker is paying in premiums. Outside of life expectancy for the average smoker, smoking also increases health risks. Throw the pack away and stay healthy!
Gender: Not surprisingly, gender plays a huge role in determining your life insurance premiums. On average, women live 5 years longer than men. With a shorter life expectancy rate, men should be prepared to pay more.
Lifestyle: Do you like to skydive? Or how about mountain climbing? If you live a more “risky” lifestyle you can expect your premiums to be higher. And if you have a job or career that is a more dangerous than the typical office job, you can also expect to pay higher premiums.
Family Medical History: Another area that is looked into is your family’s medical history. If you have a long line of family members with heart conditions or strokes, you can expect to pay a higher rate. Some carriers put more of an emphasis on family medical history than others but always be prepared because it can be a determining factor.
Driving Record: Well let’s be honest, some drivers are just better than others. With all of the distractions that we have on the road, more and more accidents occur. If you have a long history of speeding tickets and moving violations it can certainly impact the premium. Safety first!
Life happens, and typically most unfortunate life events happen without a warning. You don’t want to have an, “uh-oh, is it too late?” Why not prepare yourself for the future? Not only for yourself but also your family’s future. If you need some guidance I can walk you through the steps, from first to last showing you not only the best companies and carriers for life insurance but also the financial benefits for your retirement with life insurance.